Q&A Forum

Accounting For Customer Support

Is there any guidance on where customer support payroll expenses should go - COGS or Opex? We do not manufacture products, but the business is a subscription box rental company. Our operations/fulfillment payroll expenses are included in COGS but don't have clear guidance on where customer support payroll expenses should be classified.

Hi Rachel
What does Customer Support do in your business? Some companies see them as (a) Sales order entry, (b) post sales support/customer service or (c) both.

Either way, look at COGS = cost of getting goods to point of sale. That, in my view, means customer support are either a selling expense or an opex. They are not involved in "getting goods to point of sale."

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